COLUMBUS, Ohio (3/12/13)--The Ohio Credit Union League's State Budget Impact Work Group (SBIWG) is looking to identify the potential impact of a proposed Ohio state sales tax expansion on credit unions' bottom lines, and is preparing for the fight to uphold the tax status for state-chartered credit unions.
The group of 16 Ohio credit union leaders and league staff--in a meeting this week--began working through the several taxes that credit unions and consumers would face, and researching the bottom-line impact, the league said (eLumination Newsletter March 6).
League staff are monitoring Ohio State House committee hearings on the proposed biennium state budget for greater clarity and detail, especially regarding which financial institution "service charges" would require credit unions to collect sales tax from members and remit it to the state.
Gov. John Kasich last month officially proposed the Ohio biennium budget, which expands the products and services subject to sales tax, and lowers the overall rate to 5% from 5.5% (eLumination Newsletter Feb. 6).
"The formation of the SBIWG was a response by the league to understand the true impact of the governor's proposed sales tax expansion--on credit unions," Patrick Harris, league media and public relations director, told News Now. "Our credit union leaders are our best resource to inform us and guide us during the budget process, and we have a strong group leading the SBIWG.
"Their charge will be to provide direction and assistance for the Ohio Credit Union League's state budget advocacy response game plan, and in the process, identify impacts of the proposed expansion of the state sales tax on credit union bottom lines," he added.
Regarding the state budget process, more than 50 witnesses testified last week, with a large majority opposing the proposed sales tax provisions or voicing concerns, Harris said. Interested parties testifying included the Ohio Society of Certified Public Accountants, the Ohio Auto Dealers Association, the Ohio Association of Realtors and the Ohio State Bar Association.
As more information becomes available, the league said it will share it and lead the charge for grassroots actions when needed.